After suffering a couple of 51% attacks, Ethereum Classic (ETC) Labs is planning to adopt measures that would protect its network from similar attacks in the future.
ETC Goes After NiceHash Amid Multiple 51% Attacks
In a Medium blog post on Monday, ETC Labs announced that it would involve regulators globally and law enforcement agencies to monitor the activities of crypto hash rentals services.
This move comes after the Ethereum Classic Network witnessed three 51% attacks, with the last two attacks happening within one week. While the second attack saw perpetrators double-spend 807,260 ETC ($5.6 million), with 17.5 BTC worth $199,000 used to purchase hash power from Nicehash, the third attack saw a “reorg” of 4,000 ETC blocks.
With two 51% attacks happening within a short time frame, ETC Labs stated in its blog post that investigations are already underway. Furthermore, ETC Labs pointed out that the Slovenia-based crypto hash power platform NiceHash enabled multiple attacks on the ETC network.
An excerpt from the post reads:
“Many exchanges and other digital asset service providers have implemented robust KYC and anti-money laundering programs, however, hash rental platforms such as NiceHash often purport to be unregulated, potentially facilitating money laundering and other illegal activities.”
The blog post also revealed that NiceHash co-founder was arrested for fraud and is awaiting extradition to the U.S. As part of measures to stop further 51% attacks and safeguard its network, ETC Labs revealed that it would carry out legal actions against platforms that contribute to such attacks.
Numerous POWs Vulnerable to Blockchain Reorg Exploits
As reported in January 2020, the Bitcoin Gold (BTG) network also suffered a51% attack, after falling victim to a similar attack back in 2018. In the January 2020 attack, there were two “reorgs” on BTG, resulting in a double-spend of 1,900 BTG and 5,267 BTG.
While Ethereum Classic Labs is looking to go after entities that enable 51%attacks, the ETC network is still vulnerable to a 51%attack. As at the time of writing, data from Crypto51.app, a website that monitors the estimated cost of one hour 51% attack on proof-of-work (POW) blockchains, an attacker will need only about $5,000 to attack the ETC blockchain.
Apart from the relatively small money required to rent the hash power necessary to carry out such attacks, ETC appears to be one of the easiest to hack using NiceHash resources. By comparison, the likes of Bitcoin and Ethereum will cost the attacker between $500,000 to almost $1 million.